##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended: June 30, 2010
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission file number: 0-21714
 CSB Bancorp, Inc.
 (Exact name of registrant as specified in its charter)
 Ohio
    
    34-1687530(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification Number)
 91 North Clay, P.O. Box 232, Millersburg, Ohio 44654
 (Registrants telephone number)
  þ o
  o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
  o þ
  Common stock, $6.25 par value
    
    Outstanding at August 13, 2010:2,734,799 common shares




---



##### 



PagePart I  Financial InformationITEM 1   FINANCIAL STATEMENTS (Unaudited)Consolidated Balance Sheets
    
    
    3Consolidated Statements of Income
    
    
    4Consolidated Statements of Changes in Shareholders Equity
    
    
    5Condensed Consolidated Statements of Cash Flows
    
    
    6Notes to the Consolidated Financial Statements
    
    
    7ITEM 2 - MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    
    
    16ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
    
    
    22ITEM 4T  CONTROLS AND PROCEDURES
    
    
    23Part II  Other InformationITEM 1  Legal Proceedings
    
    
    241A  Risk Factors
    
    
    242  Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    243  Defaults upon Senior Securities
    
    
    244  Removed and Reserved
    
    
    245  Other Information
    
    
    246  Exhibits
    
    
    25Signatures
    
    
    26EX-11EX-31.1EX-31.2EX-32.1EX-32.2




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##### Table of Contents



June 30,
    
    
    December 31,(dollars in thousands, except per share data)
    
    2010
    
    
    2009ASSETSCash and due from bank
    
    $
    8,480
    
    
    $
    8,803Interest-earning deposits in other banks
    
    
    31,097
    
    
    
    33,858Federal funds sold
    
    
    298
    
    
    
    Total cash and cash equivalents
    
    
    39,875
    
    
    
    42,661Securities available-for-sale, at fair value
    
    
    71,076
    
    
    
    75,158Restricted stock, at cost
    
    
    5,463
    
    
    
    5,463Total securities
    
    
    76,539
    
    
    
    80,621Loan held for sale
    
    
    64
    
    
    
    340Loans
    
    
    311,856
    
    
    
    313,482Less allowance for loan losses
    
    
    4,608
    
    
    
    4,059Net loans
    
    
    307,248
    
    
    
    309,423Premises and equipment, net
    
    
    8,122
    
    
    
    8,354Bank owned life insurance
    
    
    2,906
    
    
    
    2,854Core deposit intangible
    
    
    438
    
    
    
    469Goodwill
    
    
    1,725
    
    
    
    1,725Accrued interest receivable and other assets
    
    
    4,325
    
    
    
    4,219Total Assets
    
    $
    441,242
    
    
    $
    450,666LIABILITIESDepositsNoninterest-bearing
    
    $
    57,204
    
    
    $
    53,974Interest-bearing
    
    
    272,613
    
    
    
    275,512Total deposits
    
    
    329,817
    
    
    
    329,486Short-term borrowings
    
    
    31,089
    
    
    
    28,764Other borrowings
    
    
    31,955
    
    
    
    45,010Accrued interest payable and other liabilities
    
    
    1,605
    
    
    
    1,584Total liabilities
    
    
    394,466
    
    
    
    404,844SHAREHOLDERS EQUITYCommon stock, $6.25 par value: Authorized 9,000,000
shares; issued 2,980,602 shares
    
    
    18,629
    
    
    
    18,629Additional paid-in capital
    
    
    9,994
    
    
    
    9,994Retained earnings
    
    
    21,820
    
    
    
    21,146Treasury stock at cost: 245,803 shares
    
    
    (5,015
    )
    
    
    (5,015
    )Accumulated other comprehensive income
    
    
    1,348
    
    
    
    1,068Total shareholders equity
    
    
    46,776
    
    
    
    45,822Total Liabilities and Shareholders Equity
    
    $
    441,242
    
    
    $
    450,666
  3




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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,(dollars in thousands, except per share data)
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009Interest incomeLoans, including fees
    
    $
    4,286
    
    
    $
    4,582
    
    
    $
    8,588
    
    
    $
    9,203Taxable securities
    
    
    647
    
    
    
    798
    
    
    
    1,398
    
    
    
    1,685Nontaxable securities
    
    
    82
    
    
    
    80
    
    
    
    166
    
    
    
    148Other
    
    
    14
    
    
    
    6
    
    
    
    33
    
    
    
    9Total interest income
    
    
    5,029
    
    
    
    5,466
    
    
    
    10,185
    
    
    
    11,045Interest expenseDeposits
    
    
    876
    
    
    
    1,135
    
    
    
    1,752
    
    
    
    2,298Other
    
    
    320
    
    
    
    499
    
    
    
    719
    
    
    
    1,021Total interest expense
    
    
    1,196
    
    
    
    1,634
    
    
    
    2,471
    
    
    
    3,319Net interest income
    
    
    3,833
    
    
    
    3,832
    
    
    
    7,714
    
    
    
    7,726Provision for loan losses
    
    
    239
    
    
    
    394
    
    
    
    758
    
    
    
    635Net interest income after provision
for loan losses
    
    
    3,594
    
    
    
    3,438
    
    
    
    6,956
    
    
    
    7,091Non-interest incomeService charges on deposit accounts
    
    
    286
    
    
    
    324
    
    
    
    555
    
    
    
    618Trust and financial services
    
    
    124
    
    
    
    120
    
    
    
    266
    
    
    
    234Debit card interchange fees
    
    
    126
    
    
    
    97
    
    
    
    234
    
    
    
    182Gain on sale of loans
    
    
    45
    
    
    
    117
    
    
    
    91
    
    
    
    184Securities (losses) gains, net
    
    
    148
    
    
    
    (1
    )
    
    
    148
    
    
    
    116Other income
    
    
    160
    
    
    
    123
    
    
    
    326
    
    
    
    242Total non-interest income
    
    
    889
    
    
    
    780
    
    
    
    1,620
    
    
    
    1,576Non-interest expensesSalaries and employee benefits
    
    
    1,744
    
    
    
    1,696
    
    
    
    3,349
    
    
    
    3,405Occupancy expense
    
    
    192
    
    
    
    231
    
    
    
    412
    
    
    
    474Equipment expense
    
    
    124
    
    
    
    138
    
    
    
    251
    
    
    
    272State franchise tax
    
    
    135
    
    
    
    126
    
    
    
    270
    
    
    
    236Professional and director fees
    
    
    170
    
    
    
    185
    
    
    
    324
    
    
    
    328FDIC deposit insurance
    
    
    163
    
    
    
    218
    
    
    
    308
    
    
    
    391Amortization of intangible assets
    
    
    16
    
    
    
    16
    
    
    
    32
    
    
    
    33Other expenses
    
    
    606
    
    
    
    600
    
    
    
    1,245
    
    
    
    1,200Total non-interest expenses
    
    
    3,150
    
    
    
    3,210
    
    
    
    6,191
    
    
    
    6,339Income before income taxes
    
    
    1,333
    
    
    
    1,008
    
    
    
    2,385
    
    
    
    2,328Federal income tax provision
    
    
    412
    
    
    
    302
    
    
    
    727
    
    
    
    726Net income
    
    $
    921
    
    
    $
    706
    
    
    $
    1,658
    
    
    $
    1,602Basic and diluted earnings per share
    
    $
    0.34
    
    
    $
    0.26
    
    
    $
    0.61
    
    
    $
    0.59
  4




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Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Balance at beginning of period
    
    $
    46,171
    
    
    $
    44,392
    
    
    $
    45,822
    
    
    $
    43,468Comprehensive income :Net income
    
    
    921
    
    
    
    706
    
    
    
    1,658
    
    
    
    1,602Change in net unrealized
gain (loss), net of reclassi-fication adjustments and
related income taxes $91,
$37, $145 and
$304, respectively
    
    
    176
    
    
    
    71
    
    
    
    281
    
    
    
    590Total comprehensive income
    
    
    1,097
    
    
    
    777
    
    
    
    1,939
    
    
    
    2,191Stock-based compensation expense
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    3Cash dividends declared
($0.18 per share in
2010 and 2009)
    
    
    (492
    )
    
    
    (492
    )
    
    
    (985
    )
    
    
    (985
    )Balance at end of period
    
    $
    46,776
    
    
    $
    44,678
    
    
    $
    46,776
    
    
    $
    44,678
  5




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Six Months EndedJune 30,(dollars in thousands, except per share data)
    
    2010
    
    
    2009Net cash from operating activities
    
    $
    2,104
    
    
    $
    683Cash flows from investing activitiesSecurities available-for-sale:Proceeds from maturities, calls and repayments
    
    
    28,004
    
    
    
    21,371Purchases
    
    
    (26,800
    )
    
    
    (12,319
    )Proceeds from sale of securities
    
    
    3,359
    
    
    
    1,297Purchase of Federal Reserve Bank stock
    
    
    
    
    
    
    (231
    )Proceeds from sale of other real estate
    
    
    228
    
    
    
    29Loan originations, net of repayments
    
    
    1,085
    
    
    
    (2,273
    )Premises and equipment expenditures, net
    
    
    (44
    )
    
    
    (111
    )Net cash provided by investing activities
    
    
    5,832
    
    
    
    7,763Cash flows from financing activitiesNet change in deposits
    
    
    378
    
    
    
    (4,807
    )Net change in short-term borrowings
    
    
    2,325
    
    
    
    2,026Repayment of other borrowings
    
    
    (12,933
    )
    
    
    (528
    )Cash dividends paid
    
    
    (492
    )
    
    
    (492
    )Net cash used for financing activities
    
    
    (10,722
    )
    
    
    (3,801
    )Net change in cash and cash equivalents
    
    
    (2,786
    )
    
    
    4,645Cash and cash equivalents at beginning of period
    
    
    42,661
    
    
    
    12,746Cash and cash equivalents at end of period
    
    $
    39,875
    
    
    $
    17,391Supplemental disclosuresInterest paid
    
    $
    2,709
    
    
    $
    3,668Income taxes paid
    
    
    850
    
    
    
    920
  6




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##### Table of Contents



NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
    RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
    7




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##### Table of Contents



RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (continued)
      8




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##### Table of Contents



NOTE 2  SECURITIES
  Gross
    
    
    GrossJune 30, 2010
    
    Amortized
    
    
    unrealized
    
    
    unrealized
    
    
    Fair(dollars in thousands)
    
    Cost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S.
government
corporations and agencies
    
    
    15,978
    
    
    
    93
    
    
    
    
    
    
    
    16,071Mortgage-backed securities
    
    
    42,721
    
    
    
    1,738
    
    
    
    33
    
    
    
    44,426Obligations of states and
political subdivisions
    
    
    10,166
    
    
    
    265
    
    
    
    9
    
    
    
    10,422Total debt securities
    
    
    68,965
    
    
    
    2,096
    
    
    
    42
    
    
    
    71,019Equity Securities
    
    
    69
    
    
    
    2
    
    
    
    14
    
    
    
    57Total available-for-sale
    
    
    69,034
    
    
    
    2,098
    
    
    
    56
    
    
    
    71,076Restricted stock
    
    
    5,463
    
    
    
    
    
    
    
    
    
    
    
    5,463Total securities
    
    $
    74,497
    
    
    $
    2,098
    
    
    $
    56
    
    
    $
    76,539
 Gross
    
    
    GrossDecember 31, 2009
    
    Amortized
    
    
    unrealized
    
    
    unrealized
    
    
    Fair(dollars in thousands)
    
    Cost
    
    
    gains
    
    
    losses
    
    
    ValueAvailable-for-sale:U.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S.
government
corporations and agencies
    
    
    14,164
    
    
    
    11
    
    
    
    142
    
    
    
    14,033Mortgage-backed securities
    
    
    49,706
    
    
    
    1,828
    
    
    
    176
    
    
    
    51,358Obligations of states and
political subdivisions
    
    
    9,505
    
    
    
    131
    
    
    
    22
    
    
    
    9,614Total debt securities
    
    
    73,475
    
    
    
    1,970
    
    
    
    340
    
    
    
    75,105Equity Securities
    
    
    65
    
    
    
    
    
    
    
    12
    
    
    
    53Total available-for-sale
    
    
    73,540
    
    
    
    1,970
    
    
    
    352
    
    
    
    75,158Restricted stock
    
    
    5,463
    
    
    
    
    
    
    
    
    
    
    
    5,463Total securities
    
    $
    79,003
    
    
    $
    1,970
    
    
    $
    352
    
    
    $
    80,621
  Available-for-sale
    
    Amortized Cost
    
    
    Fair ValueDue in one year or less
    
    $
    1,428
    
    
    $
    1,436Due after one through five years
    
    
    4,456
    
    
    
    4,559Due after five years through ten years
    
    
    20,907
    
    
    
    21,384Due after ten years
    
    
    42,174
    
    
    
    43,640Total debt securities available-for-sale
    
    $
    68,965
    
    
    $
    71,019
 9




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##### Table of Contents



NOTE 2  SECURITIES (continued)
 Realized Gains and Losses
  Three months ended
    
    
    Six months endedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Proceeds
    
    $
    3,359
    
    
    $
    5
    
    
    $
    3,359
    
    
    $
    1,297Realized gains
    
    $
    148
    
    
    $
    
    
    
    $
    148
    
    
    $
    151Realized losses
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Impairment losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    35Net securities
(losses) gains
    
    $
    148
    
    
    $
    (1
    )
    
    $
    148
    
    
    $
    116
   Securities in a Continuous Unrealized Loss PositionLess than 12 Months
    
    
    12 Months or More
    
    
    Total(dollars in thousands)
    
    Gross Unrealized
    
    
    Fair
    
    
    Gross Unrealized
    
    
    Fair
    
    
    Gross Unrealized
    
    
    FairJune 30, 2010
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    ValueMortgage-backed securities
    
    $
    
    
    
    $
    
    
    
    $
    33
    
    
    $
    690
    
    
    $
    33
    
    
    $
    690Obligations of state &
political subdivisions
    
    
    9
    
    
    
    1,418
    
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    1,418Total debt securities
    
    
    9
    
    
    
    1,418
    
    
    
    33
    
    
    
    690
    
    
    
    42
    
    
    
    2,108Equity securities
    
    
    
    
    
    
    
    
    
    
    14
    
    
    
    39
    
    
    
    14
    
    
    
    39Total temporarily
impaired securities
    
    $
    9
    
    
    $
    1,418
    
    
    $
    47
    
    
    $
    729
    
    
    $
    56
    
    
    $
    2,147
 10




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##### Table of Contents



NOTE 2  SECURITIES
 Securities in a Continuous Unrealized Loss PositionLess than 12 Months
    
    
    12 Months or More
    
    
    Total(dollars in thousands)
    
    Gross Unrealized
    
    
    Fair
    
    
    Gross Unrealized
    
    
    Fair
    
    
    Gross Unrealized
    
    
    FairDecember 31, 2009
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    ValueObligations of U.S.
Corporations
and Agencies
    
    $
    142
    
    
    $
    10,008
    
    
    $
    
    
    
    $
    
    
    
    $
    142
    
    
    $
    10,008Mortgage-backed
securities
    
    
    6
    
    
    
    49
    
    
    
    170
    
    
    
    2,107
    
    
    
    176
    
    
    
    2,156Obligations of state &
political subdivisions
    
    
    22
    
    
    
    3,033
    
    
    
    
    
    
    
    
    
    
    
    22
    
    
    
    3,033Total debt securities
    
    
    170
    
    
    
    13,090
    
    
    
    170
    
    
    
    2,107
    
    
    
    340
    
    
    
    15,197Equity securities
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    41
    
    
    
    12
    
    
    
    41Total temporarily
impaired securities
    
    $
    170
    
    
    $
    13,090
    
    
    $
    182
    
    
    $
    2,148
    
    
    $
    352
    
    
    $
    15,238
  NOTE 3  LOANS
   (in thousands)
    
    June 30, 2010
    
    
    December 31, 2009Commercial
    
    $
    72,280
    
    
    $
    69,350Commercial real estate
    
    
    104,668
    
    
    
    107,794Residential real estate
    
    
    111,367
    
    
    
    114,882Installment
    
    
    6,768
    
    
    
    7,464Construction
    
    
    16,517
    
    
    
    13,761Deferred loan costs
    
    
    256
    
    
    
    231Total Loans
    
    $
    311,856
    
    
    $
    313,482
  (in thousands)
    
    June 30, 2010
    
    
    December 31, 2009Balance, at beginning of period
    
    $
    4,059
    
    
    $
    3,394Provision for loan losses
    
    
    758
    
    
    
    1,337Loans charged-off
    
    
    (309
    )
    
    
    (885
    )Recoveries
    
    
    100
    
    
    
    213Ending balance
    
    $
    4,608
    
    
    $
    4,059
 11




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##### Table of Contents



NOTE 3  LOANS
  June 30, 2010(in thousands)
    
    30-89 Days Past Due
    
    
    90 Days Past Due Accruing
    
    
    Non-AccrualCommercial
    
    $
    200
    
    
    $
    80
    
    
    $
    806Commercial real estate
    
    
    127
    
    
    
    
    
    
    
    3,310Residential real estate
    
    
    768
    
    
    
    537
    
    
    
    1,355Installment
    
    
    213
    
    
    
    
    
    
    
    Total past-due loans
    
    $
    1,308
    
    
    $
    617
    
    
    $
    5,471
 NOTE 4- FAIR VALUE MEASUREMENTS
  Level I:
    
    Inputs to the valuation methodology are unadjusted quoted
prices for identical assets or liabilities in active markets
that the Company has the ability to access.Level II:
    
    Inputs to the valuation methodology include quoted prices for
similar assets or liabilities in active markets; quoted prices
for identical or similar assets or liabilities in inactive
markets; inputs other than quoted prices that are observable
for the asset or liability; inputs that are derived principally
from or corroborated by observable market data by corroborated
or other means. If the asset or liability has a specified
(contractual) term, the Level II input must be observable for
substantially the full term of the asset or liability.Level III:
    
    Inputs to the valuation methodology are unobservable and
significant to the fair value measurement.
  12




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NOTE 4- FAIR VALUE MEASUREMENTS
  Level I
    
    
    Level II
    
    
    Level III
    
    
    Total(dollars in thousands)
    
    June 30, 2010Assets:Securities available-for-saleU.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. government
corporations and agencies
    
    
    
    
    
    
    16,071
    
    
    
    
    
    
    
    16,071Mortgage-backed securities
    
    
    
    
    
    
    44,426
    
    
    
    
    
    
    
    44,426Obligations of states and
political subdivisions
    
    
    
    
    
    
    10,422
    
    
    
    
    
    
    
    10,422Total debt securities
    
    
    100
    
    
    
    70,919
    
    
    
    
    
    
    
    71,019Equity Securities
    
    
    57
    
    
    
    
    
    
    
    
    
    
    
    57Total available-for-sale securities
    
    $
    157
    
    
    $
    70,919
    
    
    $
    
    
    
    $
    71,076December 31, 2009Securities available-for-saleU.S. Treasury security
    
    $
    100
    
    
    $
    
    
    
    $
    
    
    
    $
    100Obligations of U.S. government
corporations and agencies
    
    
    
    
    
    
    14,033
    
    
    
    
    
    
    
    14,033Mortgage-backed securities
    
    
    
    
    
    
    51,358
    
    
    
    
    
    
    
    51,358Obligations of states and
political subdivisions
    
    
    
    
    
    
    9,614
    
    
    
    
    
    
    
    9,614Total debt securities
    
    
    100
    
    
    
    75,005
    
    
    
    
    
    
    
    75,105Equity Securities
    
    
    53
    
    
    
    
    
    
    
    
    
    
    
    53Total available-for-sale securities
    
    $
    153
    
    
    $
    75,005
    
    
    $
    
    
    
    $
    75,158
  13




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NOTE 4- FAIR VALUE MEASUREMENTS
 Level I
    
    
    Level II
    
    
    Level III
    
    
    Total(dollars in thousands)
    
     June 30, 2010Assets Measured on a
Nonrecurring Basis:Impaired loans
    
    $
    
    
    
    $
    2,637
    
    
    $
    
    
    
    $
    2,637Other real estate owned
    
    
    
    
    
    
    247
    
    
    
    
    
    
    
    247Premises
    
    
    
    
    
    
    166
    
    
    
    
    
    
    
    166Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    148
    
    
    
    148December 31, 2009Impaired loans
    
    $
    
    
    
    $
    1,736
    
    
    $
    
    
    
    $
    1,736Other real estate owned
    
    
    
    
    
    
    162
    
    
    
    
    
    
    
    162Premises
    
    
    
    
    
    
    181
    
    
    
    
    
    
    
    181Mortgage servicing rights
    
    
    
    
    
    
    
    
    
    
    138
    
    
    
    138
 NOTE 5  FAIR VALUES OF FINANCIAL INSTRUMENTS
  2010
    
    
    2009Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fair(Dollars in thousands)
    
    value
    
    
    value
    
    
    value
    
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    39,875
    
    
    $
    39,875
    
    
    $
    42,661
    
    
    $
    42,661Securities
    
    
    76,539
    
    
    
    76,539
    
    
    
    80,621
    
    
    
    80,621Loans, net
    
    
    307,248
    
    
    
    312,507
    
    
    
    309,423
    
    
    
    313,993Accrued Interest Receivable
    
    
    1,199
    
    
    
    1,199
    
    
    
    1,315
    
    
    
    1,315Financial liabilities:Deposits
    
    $
    329,817
    
    
    $
    331,494
    
    
    $
    329,486
    
    
    $
    331,511Short-term borrowings
    
    
    31,089
    
    
    
    31,089
    
    
    
    28,764
    
    
    
    28,764Other borrowings
    
    
    31,955
    
    
    
    33,761
    
    
    
    45,010
    
    
    
    46,535Accrued Interest Payable
    
    
    252
    
    
    
    252
    
    
    
    322
    
    
    
    322
  Cash and cash equivalents; Accrued interest receivable; Short term borrowings, Accrued interest
payable
  Securities
  14




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##### Table of Contents



NOTE 5  FAIR VALUES OF FINANCIAL INSTRUMENTS
 Loans, net
  Deposits and Other Borrowed Funds
 
  15




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##### Table of Contents



ITEM 2
    
     MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING STATEMENTS
   FINANCIAL CONDITION
   16




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##### Table of Contents



(dollars in thousands)
    
    June 30, 2010
    
    
    December 31, 2009
    
    
    June 30, 2009Non-performing loans
    
    $
    6,088
    
    
    $
    4,141
    
    
    $
    4,071Other real estate
    
    
    247
    
    
    
    162
    
    
    
    52Allowance for loan losses
    
    
    4,608
    
    
    
    4,059
    
    
    
    3,398Total loans
    
    
    311,857
    
    
    
    313,482
    
    
    
    319,425Allowance: loans
    
    
    1.48
    %
    
    
    1.29
    %
    
    
    1.07
    %Allowance: non-performing loans
    
    
    0.8x
    
    
    
    1.0x
    
    
    
    0.8x
      17




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##### Table of Contents



RESULTS OF OPERATIONS  Three months ended June 30, 2010 and 2009
      18




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##### Table of Contents



Six months ended June 30, 2010 and 2009
     19




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##### Table of Contents



CAPITAL RESOURCES
  LIQUIDITY
  20




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##### Table of Contents



OFF-BALANCE SHEET ARRANGEMENTS
  21




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##### Table of Contents



ITEM 3
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   June 30, 2010
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    16,134
    
    $636
    
    4.1%+100
    
    15,660
    
    162
    
    1.00
    
    15,498
    
    0
    
    0.0-100
    
    N/A
    
    N/A
    
    N/A-200
    
    N/A
    
    N/A
    
    N/A
 December 31, 2009
 Changes inInterest Rates
    
    Net Interest
    
    Dollar
    
    Percentage(basis points)
    
    Income
    
    Change
    
    Change(Dollars in Thousands)+200
    
    $17,287
    
    $849
    
    5.2%+100
    
    16,739
    
    301
    
    1.80
    
    16,438
    
    0
    
    0.0-100
    
    N/A
    
    N/A
    
    N/A-200
    
    N/A
    
    N/A
    
    N/A
 22




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##### Table of Contents



ITEM 4T
    
     CONTROLS AND PROCEDURES
     CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
  23




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##### Table of Contents



ITEM 1  LEGAL PROCEEDINGS
 There are no matters required to be reported under this item.
 
 ITEM 1A  RISK FACTORS
 There were no material changes to the Risk Factors described in
Item 1A in the Companys Annual Report on Form 10-K for the
period ended December 31, 2009.
 
 ITEM 2  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 There are no matters required to be reported under this item.
 Issuer Purchase of Equity Securities
 Total Number of
    
    Maximum Number ofShares Purchased as
    
    Shares that May YetTotal Number of
    
    Average Price Paid
    
    Part of Publicly
    
    be Purchased UnderPeriod
    
    Shares Purchased
    
    Per Share
    
    Announced Plans
    
    the PlanApril 1, 2010 to 
April 30, 2010
    
    
    
    
    
    
    
    41,471May 1, 2010 to 
May 31, 2010
    
    
    
    
    
    
    
    41,471June 1, 2010 to 
June 30, 2010
    
    
    
    
    
    
    
    41,471
 On July 7, 2005 CSB Bancorp, Inc. filed Form 8-k with the Securities and Exchange
Commission announcing that its Board of Directors approved a Stock Repurchase Program
authorizing the repurchase of up to 10% of the Companys common shares then outstanding.
Repurchases will be made from time to time as market and business conditions warrant, in
the open market, through block purchases and in negotiated private transactions.
 
 Item 3  Defaults Upon Senior Securities:
 There are no matters required to be reported under this item.
 
 Item 4  Removed and Reserved:
 
 Item 5  Other Information:
 There are no matters required to be reported under this item
 24




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##### Table of Contents



Item 6  Exhibits:
 ExhibitNumber
    
    Description of Document3.1
    
    Amended Articles of Incorporation of CSB Bancorp, Inc.
(incorporated by reference to Registrants Form 10-KSB for the Fiscal Year
ended December 31, 1994).3.1.1
    
    Amended form of Article Fourth of Amended Articles of
Incorporation, as effective April 9, 1998 (incorporated by reference to
Registrants Form 10-K for the Fiscal Year ended December 31, 1998).3.2
    
    Code of Regulations of CSB Bancorp, Inc. (incorporated by
reference to Registrants Form 10-SB).3.2.1
    
    Amended Article VIII Code of Regulations of CSB Bancorp, Inc.
(incorporated by reference to Registrants Form DEF 14a for the Fiscal Year
ended December 31, 2008).4.0
    
    Specimen stock certificate (incorporated by reference to
Registrants Form 10-SB.11
    
    Statement Regarding Computation of Per Share Earnings (reference is
hereby made to Consolidated Statements of Income on page 4 hereof).31.1
    
    Rule 13a-14(a)/15d-14(a) CEOs Certification31.2
    
    Rule 13a-14(a)/15d-14(a) CFOs Certification32.1
    
    Section 1350 CEOs Certification32.2
    
    Section 1350 CFOs Certification
 25




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##### Table of Contents



CSB BANCORP, INC.
(Registrant)Date: August 13, 2010
    /s/ Eddie L. SteinerEddie L. SteinerPresident

Chief Executive OfficerDate: August 13, 2010
    /s/ Paula J. MeilerPaula J. MeilerSenior Vice President
Chief Financial Officer 26




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##### Table of Contents



ExhibitNumber
    
    Description of Document3.1
    
    Amended Articles of Incorporation of CSB Bancorp,
Inc. (incorporated by reference to Registrants Form 10-KSB
for the Fiscal Year ended December 31, 1994)3.1.1
    
    Amended form of Article Fourth of Amended
Articles of Incorporation, as effective April 9, 1998
(incorporated by reference to Registrants Form 10-k for the
Fiscal Year ended December 31, 1998)3.2
    
    Code of Regulations of CSB Bancorp, Inc.
(incorporated by reference to Registrants Form 10-SB)3.2.1
    
    Amended Article VIII Code of Regulations of CSB Bancorp, Inc.
(incorporated by reference to Registrants Form DEF 14a for the Fiscal Year
ended December 31, 2008).4
    
    Specimen stock certificate
(incorporated by reference to Registrants Form 10-SB)11
    
    Statement Regarding Computation of Per Share Earnings
(reference is hereby made to Consolidated Statements of Income on
page 4 hereof.)31.1
    
    Rule 13a-14(a)/15d-14(a) CEOs Certification31.2
    
    Rule 13a-14(a)/15d-14(a) CFOs Certification32.1
    
    Section 1350 CEOs Certification32.2
    
    Section 1350 CFOs Certification
 27